One of the major credit rating companies, Fitch Ratings, has warned that some UK water companies will “find it challenging” to maintain existing ratings for AMP8

In a new report, Fitch says the Draft Determinations recently announced by UK water regulator Ofwat for the AMP8 April 2025 to March 2030 investment period, introduces several significant changes compared to the current AMP7 April 2020 to March 2025 period.

The new report identifies companies that Fitch views as ‘below average’ from an operational standpoint and those with low headroom compared to the current rating sensitivities. 

Another credit rating company, Moody’s has lowered its rating on Thames Water’s debt to ‘junk’ in response to Ofwat’s latest ruling against the company.

The credit ratings agency downgraded Thames Water’s debt to Ba1, one level into its junk categorisation. The company’s credit outlook remains negative.

The Moody’s ‘junk’ label signals that the agency believes Thames Water is highly likely to default on its debt, making it even harder—and more expensive—for Thames Water to borrow money.